Kody Technolab Limited IPO

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i. Kody Technolab is in business of software development services to a diverse set of industries. With a focus on innovation and customer satisfaction, they provide their clients with custom software solutions that cater to their specific needs and requirements. The Company is a full stack development company that provides innovative and cutting-edge digital solutions to the clients. The company specializes in helping businesses undergo Digital Transformation by leveraging the latest technologies and trends. With a keen focus on understanding the unique challenges faced by our clients, we provide customized solutions that are tailored to meet their specific needs.

ii. The Company offers a wide range of services that include custom development, AI Consultation & Implementation, IOT Services, and IT consulting services. Their expertise in these areas allows us to deliver solutions that are not only innovative but also efficient, reliable, and cost-effective. They work closely with their clients to understand their business goals, challenges, and future potential, and then develop solutions that help them achieve their objectives.

iii. The company’s team of skilled professionals comprises developers, designers, project managers, and quality assurance specialists. The vast experience and expertise in their respective domains enable them to deliver solutions that are of the highest quality and meet the highest industry standards.

iv. Their ability to deliver customized solutions that cater to the specific needs of their clients has earned them a reputation as a trusted and reliable technology partner.

v. Their purpose is to empowers businesses to thrive in the digital age by providing innovative, eco-friendly solutions that drive sustainable growth and reduce carbon footprints. Their focus is on making technology easy to use, accessible, and reducing human suffering. They help businesses achieve their goals and gain a competitive advantage by providing tailored software development and consulting services. The commitment to excellence, social responsibility, and positive impact drives their dedication to contributing to the world’s economic growth.

Competitive Strengths

i. Existing client relationship
ii. Diversified customer base and revenue sources
iii. Well-trained employee base
iv. Opportunity for innovation

Objects of the Kody Technolab Limited IPO:

The Net Proceeds from the Fresh Issue will be utilized towards the following objects: i. Funding Capital Expenditure toward setting up a development center at Gift City, Gandhinagar. ii. Funding incremental Working Capital Requirement of the company. iii. Repayment/ prepayment of certain borrowings availed by the company. iv. General Corporate Purpose. v. To Meet the Issue Expenses.
DRHP of Kody Technolab Limited IPO
RHP of Kody Technolab Limited IPO

Kody Technolab Limited IPO Details:

Open Date: Sep 15 2023
Close Date: Sep 20 2023
Total Shares: 1,720,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 27.52 Cr Cr.
Lot Size: 800 Shares
Issue Price: ₹ 160 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 28 2023

Promoters And Management:

i. Mr. Manav Subhashchandra Patel, aged 28 years is Chairman cum Managing Director and also the Promoter of the Company. He holds Degree in Master of Business Administration (Distance) and Diploma in Engineering. He was appointed on the Board on May 05, 2017 and further designated as the Chairman cum Managing Director of the Company on June 06, 2023 for a period of 5 years, not liable to retire by rotation. He is having experience of 7 years in Information Technology industry. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. His Vision to do business with ethics & to keep up with latest developments, Consistent Innovation in Technology and Management practices has helped him provide an overall growth for the company. ii. Mrs Manali Krunal Patel, aged 32 years, is the Whole-Time Director and also the Promoter of our Company. She holds Diploma Certificate in Computer Engineering. She was originally appointed on the Board on May 05, 2017 and further designated as the Whole-Time Director of the Company on June 06, 2023. She is having of experience of 06 years in IT Industry. She has expertise in the field of Software Development, Team leading, Quality Management and Project Management and Talent Acquisition. She has been playing vital role in technological matters of the Company. iii. Mrs. Pooja Sunny Patel, aged 34 years is the Non-Executive Director and also Promoter of the Company. She holds degree in Bachelor of Commerce. She was originally appointed on the Board on May 05, 2017 and further designated as Non-Executive Director w.e.f. May 15, 2023 She is having experience of 07 years in IT and Finance. She has expertise in the field of Market research, Strategic Planning and Marketing strategies which helped for the overall development of the Company.

Financials of Kody Technolab Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
Revenue from Operations 248 384 1,095
Other Income 0.01 0.19 14
Total Revenue 248 384 1,109
Cost of technical sub-contractor 0.93 6 48
Employee Benefits Expense 216 261 475
Other Expenses 36 48 123
EBITDA -4.5 69 464
Depreciation & Amortisation 7 10 10
Finance Cost 0 0 18
EBIT -11 59 454
OPM (%) -1.81% 17.86% 41.83%
PBT -11 59 436
Tax -0.62 -3 118
PAT -11 62 318
NPM (%) -4.35% 16.17% 28.68%
No.of Shares 63.73 63.73 63.73
EPS -0.17 0.97 4.99

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Kody Technolab Limited 11 3 4.99 32.06 160 102
Ksolves India Limited 77 25 20.98 45.5 1,030 1,221
Sigma Solves Limited 56 15 14.88 28.9 430 442
* All the data is as per FY23.

Recommendation on Kody Technolab Limited IPO:

Review and Recommendation of Kody Technolab SME IPO by IZ team is 2/10 Kody Technolab Limited is an IT company that specializes in full-stack software development, offering a gamut of services from custom development to AI and IoT solutions. The sector in which the company operates is highly competitive, populated with numerous players vying for market share. Although the company has shown impressive growth, with revenues reaching ₹11 Cr in FY23, there are some noteworthy financial concerns. A significant portion of the revenue, ₹6.54 Cr, is locked in receivables. This raises a red flag as it suggests that the company is not generating cash efficiently, which could potentially affect its liquidity and operational capabilities. Furthermore, the valuation of the company appears to be on the higher side. With a P/E ratio of 32, it is substantially high, especially for an IT company. When this is juxtaposed with a PAT of ₹3.18 Cr and a market capitalization of ₹100 Cr, the valuation might seem stretched. In summary, while Kody Technolab Limited has a promising business model and has shown growth, potential investors should exercise caution. The high level of receivables and the steep valuation metrics indicate that the investment carries a certain level of risk. As always, prospective investors are strongly advised to perform their own due diligence and consult with financial advisors before making any investment decisions.

Lead Manager of Kody Technolab Limited IPO:

  1. Beeline Broking Limited

Registrar of Kody Technolab Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Kody Technolab Limited 2nd Floor, Block-J, Safal Monde Near Iscon Mall, Near Rajpathclub, S.G Highway, Bodakdev, Ahmedabad - 380054 Phone: +91-9377229944 Email: info@kodytechnolab.com Website: https://kodytechnolab.com/

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